The BMW Group and Phoenix Consortium signed and completed the purchase contracts in London today. The symbolic purchase price is 10 GBP. Phoenix will be taking responsibility for the development, production and distribution of Rover Cars. In addition, Phoenix will aquire the MG brand and other Heritage brands. Professor Milberg: "Rover customers can be certain that they will continue to receive the expected high quality of customer service in the future too."

The Phoenix Consortium will take over production in Birmingham of the Rover 25 and 45, the MGF sports car and the current Mini, until the start of production of the new Mini. Furthermore, it was agreed to shift the production of the Rover 75 from Oxford to the Birmingham plant. Phoenix plans to start production of the Rover 75 Estate at a later point in time.

The BMW Board has thus taken the first important step towards implementing the reorientation of the company.

On 16 March 2000, the Supervisory Board of BMW AG approved the Board of Management’s resolution to withdraw from Rover. To avoid a closure, the sale of Rover always took first priority for the BMW Group. After negotiations with what was then the only interested party, Alchemy Partners, had collapsed because of new demands that were unreasonable, negotiations with the Phoenix Consortium, which had been formed in the meantime, were started, these successfully concluded today.

As already announced the BMW Group will be investing in production of the new Mini in Oxford rather than in Birmingham. The new Mini will be launched in the early summer of 2001. The completion in Hams Hall in the Midlands, UK, will proceed as planned.

(May 9, 2000)